Vietnam Star Anise FOB Prices Steady as New Crop Approaches
Vietnamese star anise FOB prices in Hanoi are steady in early August, with balanced supply, normal weather in Lạng Sơn and stable demand from China.
Prices
Indicative export offers from Hanoi for conventional Vietnamese star anise are broadly flat versus late July, while organic material has softened slightly week on week. Converting current quotations to euros (using an indicative rate of 1 USD ≈ 0.92 EUR) gives:
The flat price structure reflects balanced spot demand from China and other Asian buyers and limited farmer selling ahead of the main August–September harvest in northern provinces such as Lạng Sơn, which account for the majority of Vietnam’s star anise output.
Supply & Demand
Lạng Sơn province alone represents around 70% of Vietnam’s star anise area, with roughly 28,000 ha in stable bearing and annual dried output of 12,000–14,000 tonnes. This concentration makes FOB prices highly sensitive to weather and logistics in the northern border region.
China remains the primary outlet for Vietnamese star anise, both as dried pods and as essential oil, with imports estimated in the thousands of tonnes annually. Recent Vietnam–China trade discussions have aimed to keep agricultural flows smooth, including commitments to improve staffing and working hours at border gates for agri-exports. At present there are no fresh reports of acute customs bottlenecks or new sanitary restrictions specific to star anise within the last few days.
Weather & Crop Outlook (VN)
Star anise in northern Vietnam, particularly Lạng Sơn’s upland districts, benefits from a humid subtropical climate with high rainfall and significant diurnal temperature variation in July–August, conditions that historically support essential oil accumulation and pod development. Recent early-August weather has followed this seasonal pattern of warm, wet conditions without reports of widespread storm damage in core producing areas.
Given the main harvest window of August–September for Lạng Sơn star anise, the current outlook points to a broadly normal crop if heavy, prolonged rains or typhoons do not materialise later in the month. In the very near term, weather is therefore viewed as neutral for prices, with more significant risk skewed toward late-August storm events rather than the coming three days.
Fundamentals & External Drivers
On the policy side, China’s tariff schedule under RCEP envisages progressive reductions on HS 0909.61 and 0909.62 star anise lines, with applied rates stepping down toward zero over the commitment period. This underpins Vietnam’s medium-term competitiveness into China and limits upside price risk from tariff shocks.
Macro-level disruptions, including higher transport and energy costs linked to ongoing geopolitical tensions in the Middle East and Iran, continue to push up general logistics costs in Asia, but there have been no star-anise-specific freight constraints between northern Vietnam and southern China reported in the last few days. Overall, fundamentals point to a well-supplied market with steady near-term demand, keeping prices range-bound.
Trading Outlook (next 1–2 weeks)
- Flat conventional FOB prices and a slightly softer organic market favour short-term coverage for nearby Q3 needs rather than aggressive forward buying.
- Given high regional concentration of supply in Lạng Sơn and neighbouring provinces, a close watch on late-August typhoon activity is advisable; any confirmed crop damage could quickly tighten Q4 availability.
- Sellers with high-quality, GI-linked origin product may retain some bargaining power if Chinese demand firms into the new-crop marketing season, particularly for larger, low-broken lots.
3‑Day Directional Price Indication (VN, FOB)
- Hanoi FOB conventional star anise: stable in a narrow band around ≈ 7.0 EUR/kg over the next three days; no strong catalysts for a move.
- Hanoi FOB organic star anise: bias slightly softer but within ±1–2% of ≈ 6.4 EUR/kg as buyers test lower bids into the new-crop period.